The Launch of V2 Staking on Vertex

Vertex

Nov 12, 2024 • 10 min read

Staking V2 has arrived on Vertex! The fully revamped upgrade for VRTX staking introduces several major changes that are poised to drive long-term growth and deliver rewards to the dedicated Vertex community.

Users can now migrate their staked VRTX from V1 → V2. Exclusive bonus rewards are available to users that migrate to V2 or stake new VRTX throughout the next 2 weeks!

V2 Migration Timeline:

Start Date = Tuesday, November 12th, 2024 @ 17:00 UTC
End Date = Wednesday, November 27th, 2024 @ 17:00 UTC

What does the VRTX Staking V2 upgrade mean for you, anon?

Read on and let’s explore everything you need to know about the migration to V2.

What’s New in VRTX Staking V2?

The launch of VRTX Staking V2 marks a pivotal moment in the evolution of VRTX Tokenomics, as chronicled in the Vertical Program blog series.

Initially detailed in the “VRTX Vertical Program – Stage 2” post, the significant staking V2 upgrade takes effect today, and the migration period continues for the next two weeks.

For a quick refresher, the V2 launch encompasses 4 major updates to the staking mechanism:

Auto-Compounding Rewards: Staking rewards automatically compound, boosting long-term returns without manual input. USDC from trading fees will buy back VRTX, which is allocated as rewards to V2 stakers in the new staking pool contract.
Immediate Access to Maximum Staking Rewards: The original model delayed maximum yield by six months, favoring early stakers and deterring new participants. The new structure allows users to stake at any time and instantly earn maximum yield, simplifying the process and encouraging wider engagement.
Flexible Unstaking Options: Users can unstake with a 14-day cooldown or opt for immediate unstaking with a 10% penalty, incentivizing patience and loyalty. Penalties are redistributed to the V2 staking pool to enhance the following week's yield for long-term stakers.
Sustainable Rewards Model: Staking V2 introduces a more sustainable staking rewards structure across a more diverse set of yield sources. The total yield can be broken down into 3 primary streams:

Base APY: A portion of the VRTX emissions saved from recent reductions in trading incentives will be allocated to generate additional yield for stakers. This yield will start at an annualized rate of 15% and gradually taper to 1.5% over the course of three years.
Fee APY: Trading fees will be used to buy back VRTX and add it to the staking pool. Initially, 50% of all protocol fees will go toward these buybacks, gradually increasing to 100% of total protocol revenue.
Loyalty APY: Participants who bypass the 14-day cooldown period will incur a 10% early unstake penalty. The revenue from these penalties will be redistributed as additional staking yield for long-term participants.

For more details on the V2 updates to VRTX staking, make sure to read the Stage 2 blog post from the Vertical Program.

Ready to migrate your staked VRTX to V2, anon?

V2 Staking Migration & Bonus

Starting today, the VRTX staking model is transitioning from the V1 mechanism to the new V2 design. During the 2-week migration period, Vertex users have various options depending on their staked VRTX status. Participants fall into two main categories:

Existing (V1) VRTX Stakers
New (V2) VRTX Stakers

Both groups can earn a one-time bonus reward by participating in the V2 migration.

V2 Migration Bonus

The bonus, calculated as a percentage of staked VRTX, depends on a user’s score multiplier:

Max Bonus: Users with the highest voVRTX boost are eligible for a 7.5% bonus when migrating to the V2 contract.
Partial Boosts: Wallets with a voVRTX score but not at the maximum can earn between 2.5% and 7.5%, based on staking duration. The bonus scales linearly, with a 3-month stake earning a 5% bonus and a 6-month stake earning the full 7.5%.
New Stakers: Users without a voVRTX score, including new V2 stakers, will receive a default 2.5% bonus for staking during the migration period.

Migration bonuses consist of an additional allocation of VRTX on top of their staked position as a reward for participating in the V2 migration.

Summary:

Max Bonus: 7.5% for full voVRTX boost (existing V1 stakers)
Bonus Range: 2.5% – 7.5% based on staking duration
New Users: 2.5% bonus
3-Month Stakers: 5% bonus
6-Month Stakers: 7.5% bonus

Group 1: Existing (V1) VRTX Stakers

Beginning today, users with staked VRTX on Vertex can migrate their staked position from V1 → V2 on the Vertex app. Migrating staked VRTX to V2 at any point over the next 2 weeks will earn users a migration bonus.

Existing stakers are presented with 3 options during the 2-week migration period:

Migrate to V2: If you have staked VRTX already and want to migrate to V2, you automatically qualify for the migration bonus and immediately begin accruing protocol rewards on your staked V2 position.
Unstake V1 Position: If you simply want to unstake your V1 position, you’ll need to wait the standard 14-day waiting period for the unstaked VRTX to be available in your wallet. As a result, electing to not migrate to V2 will forfeit the migration bonus.
Do Nothing: If you don’t participate in the V2 staking migration at all over the next 2 weeks, your V1 position will remain untouched but will yield no protocol rewards moving forward – until you migrate to V2. Any V1 positions left untouched over the next 2 weeks will also forfeit the migration bonus.

Example (Alice) – V2 Migration Bonus

Alice, an existing V1 staker, holds 100,000 VRTX in the V1 staking pool with a voVRTX score multiplier of 1.75x before the V2 migration period. By choosing to migrate her stake during the bonus window, she qualifies for a 5% bonus on her 100,000 VRTX.

Bonus Calculation: 100,000 VRTX x 0.05 = 5,000 VRTX

At the end of the migration period, Alice’s total stake in V2 will increase to 105,000 VRTX.

Group 2: New (V2) VRTX Stakers

New VRTX stakers include those without a previous V1 staking position or users who have migrated their V1 stake to V2 already and wish to add more staked VRTX.

Any VRTX staked during the migration period will automatically receive a 2.5% bonus until November 27th.

Example (Bob) – V2 Migration Bonus

Bob, a new Vertex user, is eager to join the V2 migration and earn a bonus reward. He plans to stake 100,000 VRTX in the V2 contract, which qualifies for the default 2.5% bonus for new users.

Bonus Calculation: 100,000 VRTX x 0.025 = 2,500 VRTX

This bonus grants Bob an additional 2,500 VRTX, bringing his total staked amount in V2 to 102,500 VRTX.

*Please note that since the V2 migration period is live, there will be no partial unstaking of VRTX from V1. For example, if you have a staked VRTX position from V1, you can only choose to either migrate to V2 or unstake 100% of your V1 position.

Step-By-Step Tutorials – How to Migrate to V2

Participating in the V2 staking migration is intuitive on the Vertex app. A new staking page layout for V2 accommodates the migration process for both new and existing VRTX stakers.

Simply follow the step-by-step walkthrough below!

To Get Started:

Access the New Staking Page:

Upon V2 launch, a new page layout will be available to users.
Existing V1 stakers will see a banner at the top and their V1 position at the bottom of the page.

Initiate Migration:

Click [Learn More & Migrate] in the banner or the migrate button in the V1 position card.
A dialog box will appear, displaying further migration details and your specific bonus information.

Complete the Migration:

Click [Migrate to V2] and authorize the transaction to finalize your migration.

Tutorial – Navigating the V2 Staking Page

The updated staking V2 interface on the Vertex app is designed for seamless position management and migration to V2.

The layout of the page is formatted as follows:

Top Section: Displays V2 staking pool statistics.
Left Panel – Position Details:
- Staked Balance: Total VRTX staked, including earned rewards.
- Amount Staked: Initial VRTX stake.
- Amount Earned: VRTX accumulated since staking.
- Pool Share: Your proportional stake in the V2 pool.
Right Panel – Available Actions:
- Stake
- Unstake
- Claim Unstaking: For standard 14-day unstaking, claim here after the waiting period.
Bottom Section: Displays remaining V1 staking details.
- Unclaimed rewards or unstaking VRTX from V1 can be managed here.

https://app.vertexprotocol.com/vrtx

Tutorial – V2 Staking & Unstaking

Staking:

Initiate by pressing [Stake], input your desired amount, and confirm. Your staking balance and the current APR will update accordingly.
During the bonus period, your earned bonus will be displayed.

Unstaking Options:

Standard Unstake:

Receive your full staked balance after a 14-day unlocking period.

Instant Unstake (New Feature):

Withdraw 90% of your staked balance immediately. The remaining 10% is burned.

To Unstake:

Click the [Unstake] button and choose your preferred unstaking method.

For any further questions or input, make sure to contact the team on the Official Vertex Discord!

New Maker Rebate Tiers – V2 Migration Details

Starting at 17:00 UTC on Tuesday, November 12th 2024, the VRTX Staking Pool V2 migration will be live.

Specific to market makers, the new maker rebate tiers highlighted in Stage 3 of the Vertical Program will go into effect immediately upon the launch of V2 Staking.

Market makers migrating within 24 hours of the V2 launch will see their maker rebate tier adjusted the next day.
For market makers migrating after the first 24 hours of the V2 launch, rebate adjustments will take effect the following week.

The New Maker Rebate Structure on Vertex

Please note that the minimum maker rebate will remain at 0.5 bps between the following timeframe:

Start = Tuesday, November 12th at 17:00 UTC
End = Wednesday, November 27th at 17:00 UTC

For any other inquiries, please feel free to contact the Vertex team directly.

FAQs

1. What happens if you don’t migrate my staked VRTX from V1 → V2 within 2 weeks?

Your staked V1 position will continue to exist until you choose to migrate or unstake it.
The V1 position will NOT earn any rewards – all of Vertex’s protocol rewards will automatically be directed to V2 stakers.
You can migrate your V1 position at any point after the 2 weeks, you just won’t receive the bonus.

2. What if I unstake my V1 position instead of migrating it to V2?

You can unstake your existing position if you wish. You will have to wait the normal 21 days for it to unlock, during which no rewards are earned.
Once unlocked you will be able to claim your unstaked VRTX on the staking page.

3. What happens if I have unclaimed USDC rewards?

If you have unclaimed rewards from V1, you will be able to claim the USDC on the staking page of the Vertex app until they are exhausted.
You DO NOT lose any rewards that haven’t been claimed from V1.
The launch of V2 staking marks the final week of protocol rewards in USDC. Moving forward, all protocol rewards will be a function of the new VRTX buyback and stake mechanism with auto-compounding rewards.
The final round of USDC distribution will occur on Tuesday, November 12th @ 16:00 UTC.

4. Can I migrate only a portion of my staked V1 position to V2?

No. You can only migrate your ENTIRE V1 position to V2.
The same applies for unstaking VRTX – 100% of the position needs to be unstaked.

5. Do I need to claim my V2 rewards?

No. V2 rewards are automatically distributed back into the staking pool.
Every staker owns a percentage of the pool based on their pro-rata portion of the total VRTX staked in the pool.

6. Do I have to participate in the V2 migration?

No. Despite the 2-week migration period for users to earn a bonus, there is no hard expiry to migrate.
For example, users are free to unstake their VRTX from V1 with the typical 21-day unstaking period OR leave their VRTX staked in the V1 pool with no penalty.
However, staked V1 positions that remain untouched will not yield any rewards and forfeit their migration bonus.

7. What happens to my voVRTX Score?

The V2 upgrade removes the voVRTX score and multiplier from the VRTX Tokenomics.
The voVRTX scores will cease to exist moving forward in V2 and will have no impact on users after the migration period concludes.

For comprehensive details on the changes introduced to the VRTX Tokenomics by the Vertical Program, make sure to check out the posts covering the different stages below!

Vertical Program (Stage 1): Emissions & Rewards Splits
Vertical Program (Stage 2): VRTX Staking V2 Upgrade
Vertical Program (Stage 3): New Maker Rebates Tiers

About Vertex

Vertex was founded by a team of seasoned traders and engineers from both traditional finance and DeFi markets. Recognizing the need for more flexible DeFi trading, Vertex launched on Arbitrum and now is proud to play a role in the innovation of a multi-chain DeFi ecosystem.